Starbucks has struggled to reach consumers around the world.Supply doesn’t meet demand in the US, and China is ambitious Expansion plans are delayed.
coffee maker share plummeted After being reported to be lower than expected 2nd quarter earnings Early this week. The decline was primarily due to lower sales in the U.S. and China, which pushed the stock to its worst post-earnings level since 2000.
This stumbling block is inconsistent with company policy.triple shot strategy‘ was announced last November. Despite failing to attract customers, Starbucks CEO Laxman Narasimhan said during a press conference: Company financial report The strategy is delivering “efficiencies in the face of headwinds,” it said on Tuesday.
“In this environment, many customers have become more selective about where and how they spend their money,” says Narasimhan.
But many Starbucks customers in the U.S. and China are cutting back on spending at the coffee chain. Sales in the United States fell 3%, and sales in China, the company’s second-largest market, fell a further 11% in the second quarter.
Starbucks blamed the decline in U.S. sales on product unavailability and long wait times in the app, noting that customers record orders but don’t complete them.
Meanwhile, the company blamed competition in China for the slump in sales.The company announced it would open in 2022. 1 new store every 9 hours In China for the next three years.However, plans are behind schedule compared to domestic coffee giants. Luckin Coffee has over 16,000 digital-first stores.
Starbucks has lowered its profit and sales forecasts for fiscal year 2024. The coffee giant said it expects its stores’ performance to continue over the next few quarters.
